An Order From the Justice Department: Brew More Beer

The U.S. Justice Department believes America needs another big, independent beer maker to keep the cap on prices in a market where two companies, Anheuser Busch InBev NV and SAB Miller, control 65% of sales. So it’s proposing to effectively create one as part of its deal to allow AB InBev to proceed with its $20.1 billion acquisition of Mexican brewer Grupo Modelo, maker of Corona beer.

Justice’s idea is that AB InBev’s power to boost beer prices will be limited if Constellation expands its brewing capacity, and distribute the Corona and other Modelo brand beers independently in the U.S. — instead of depending on AB InBev to supply and distribute the Modelo brews as AB InBev had once proposed . More from the agreement in the full post.